WARNING: Fintech Apps could COLLAPSE [Sofi, Acorns, Robinhood, M1, Chime.].

hey everyone me Kevin here of coming to

you from my Airbnb in Florida that I had

to crash in last night the most

important warning that I have for you in

this whole banking crisis phenomenon is

be careful of smaller Banks but also

folks the big fintechs that you've

become so familiar with many of you have

asked me hey Kevin what about companies

like chime wealthfront M1 Finance Robin

Hood and the reality is a lot of these

companies

will use the deposits that you have the

cash deposits that you have with them

and offer you yields but these are not

actually banks in fact if you look at a

lot of these companies like for example

you go to acorns.com one of the very

first things you see at the top uh in

this super fine print is acorns is not a

bank that's because in order for you to

be a bank you have to have a banking

Charter but they want you to get yield

on your cash deposited with them right

so how do they do that you deposit cash

into the app they promise you let's say

four percent interest or five percent at

wealthfront or whatever it is but

they're not a bank so what they do is

they take that money and they go

deposited into small Regional banks that

can offer a higher yield and then they

take a cut so let's say a small Regional

Bank will say hey wealthfront we'll give

you 5.25 if you put all your customer

money with us

and uh and then wealthfront says okay uh

that's great we'll put a bunch of

deposits in with you wealthfront takes

5.25 let's say and then offers you five

percent wealthfront gets to take that 25

bip spread or maybe they even split that

with the bank you know half for wealth

front half for the bank but the point is

when you're using fintech apps you

should be astutely aware as to what bank

is actually backing the cash that you

have with those apps consider for

example acorns is not a bank acorns Visa

debit cards are issued by Lincoln

Savings Bank okay that sounds great

right Lincoln Savings Bank has you know

a reputation in fact if you go to

banking strategist.com you could type in

Lincoln Savings Bank and you'll see this

is a bank that has about 1.8 billion

dollars of assets under management it's

not a huge bank it's a smaller bank but

1.8 billion dollars is a pretty big bank

right but then right after that it says

or n b k c bank and usually when I hear

or it's because you're getting the or

nbkc bank is about half the size of

Lincoln Financial barely has a billion

dollars of assets under management so

how do we know that nbkc bank a bank out

of Kansas that I've never heard of

before actually has your acorns money

safe now again up to 250 000 you should

have FDIC insurance but you still don't

necessarily want to go through that crap

right so it's a danger that I would

consider the same is true for potential

banking stress at actual Banks whether

that's like an ally or a Sofi but even

look for example at M1 Finance M1

Finance for example if you go to their

fine print you'll see they also use

Lincoln Savings Bank which we just

talked about but then they also use B2

to bank for people's deposits okay well

what the heck is B2 Bank when you look

at banking strategist.com it says B2

Bank only has

41 million dollars under management it

is a bank out of Minnesota or that might

be Montana uh Montana no it is Minnesota

a bank out of Minnesota

that only has 41 million dollars under

management so then that makes you wonder

wait a minute what about the other

fintechs and there are a lot of them and

you have to look the ones that don't

actually have a banking Charter go to

their front page they have to say it on

their front page for example go to

chime.com if you type in chime.com what

do you get you get chime the first thing

you go to chime.com and then type in

command F or press command F on your

keyboard and type in bank and then

what's the first thing you're going to

see chime is a financial technology

company if the fintech not a bank

banking services provided by The Bancorp

Bank North America okay that's a big

bank and then it says or stride Bank

yeah

okay so who the heck is stride bank

because if the smaller banks are going

to have problems well then your money

could get stuck a stock well stripe bank

it's not a huge bank it's got about 2.7

billion dollars is actually larger than

Lincoln savings now just to to be clear

the assets that tier One banks have like

JP Morgan assets under management like

how much own deposits they actually have

they have

3.6 trillion dollars in assets

you've got a company like those that's

why they're called too big to fail right

Silicon Valley Bank which went bankrupt

had about 211 billion dollars in assets

these little Banks the tens of millions

to maybe a billion dollars in assets

under management according to banking

strategist.com that's scary that's not a

lot of money that's actually with all of

these different banks and the concern

here is my goodness if all of a sudden

people leave these Banks the smaller

Banks to go to the bigger ones well the

little ones get screwed so JP Morgan's

sitting at three point just over three

trillion dollars in deposits Bank of

America but 2.4 Citibank 1.7 Wells Fargo

1.7 U.S Bank uh 585 billion you know

you're talking about hundreds of

billions to trillions of dollars as

opposed to some of these smallers that

are sitting at maybe a bill

maybe tens of millions of dollars right

it's insane now I actually banked with a

small Community Bank uh and last month I

mostly moved 95 of our assets away from

that small Community Bank I did that

because I was fearful about the

financial crisis that we might be going

into and it just so happened that now

banks are starting to fail so knock on

wood that was really lucky fantastic my

startup we're safe you know we were not

even exposed to Silicon Valley bank

anyway but you know I was precautious a

month ago uh and now we're at JPM but

anyway the bank that I had banked with

had 186 billion or a million dollars

under management really small right but

some of the banks that like M1 Finance

is using are one-fourth that size

so I think these Banks could be going

through massive massive stress uh as as

a result of the contagion of Silicon

Valley Bank and any kind of fintech

could be exposed so keep that in mind if

you have cash not and I'm not talking

about in a brokerage account but if you

have cash on deposit somewhere it could

be at risk so keep that in mind very

important and as always if you like my

perspective check out the programs on

building your wealth link down below

with the Saint Patty's coupon linked

down below that you can take advantage

of now until the coupon expires at the

end of next week and then what happens

after expiration price goes up you get

lifetime access so even if you're not

ready to study now a lot of people join

now so that way they're in and then when

new content is added or they want to pop

into a course member live stream and ask

a question they can do so follow up if

you have money at a brokerage like

Weeble or Robinhood and it's not in the

cash sweep program like M1 save or spend

at M1 Finance or the cash portion at

Robinhood where you're depositing it

where you could use a debit card to get

it out if your cash is at a brokerage

which could be Robin Hood or Weeble or

whatever you are protected by sipc up to

five hundred thousand dollars right but

yes look is it true that your money's

probably safer at a bigger institution

even from a brokerage point of view

yeah probably uh anyway look I I don't

want to you know spread fud or whatever

I just I just don't want anybody to lose

money uh so anyway good luck out there

we'll see in the next one bye